A high profile property association says the narrowing of the north/south divide in the price of renting a home is a positive sign.
Average rents in the South of England cost 37% more than in the North of England in August, at £1,318 a month, according to data from Hamptons. This is the lowest figure since its records began in 2013.
The gap has closed from 43% last August and a peak of 55% in November 2021, according to the estate agent’s latest monthly lettings index. Average rents in the North last month came in at £960.
That data comes as rental growth on UK new lets eased to 5% to £1,369 last month, the slowest rate since August 2021 and less than half the peak of 12% posted last August.
In the South, the rate of growth has fallen from 8.7% to 5% over the last year, while in the North of England, rents are still rising 9.6% year-on-year, at around the same pace as last year.
Last month, rents in the North East rose 12.1% year-on-year, marking the third month in a row of double-digit increases.
Meanwhile, Londoners saw the smallest rent rises in percentage terms, with rents up 2.1% year-on-year to £2,381, across Greater London, compared to 17.1% recorded last August.
Across the UK, average rents have risen 34% or by £349 a month over the last five years, costing the typical tenant an extra £4,184 each year.
Rents in the North are up 48%, outpacing the 34% growth recorded in the South.
National Property Buyers Association spokesman Jonathan Rolande says: “A North-South divide definitely still exists, but the divide is narrowing. A gradual closing of the north south divide is no bad thing, as it may encourage hard-pressed southern renters to look further afield for property, easing the housing crisis in the south and generating prosperity in other parts of the country.
“With so many now having the ability to work remotely, it does seem madness to pay south-east levels of rent when wages are very similar or even the same as they would be if based north of Watford Gap. Redistributing wealth throughout every region of the country is the fastest way to solve much of the housing crisis that has plagued this country for decades.”
